The Tribune

By YOURI KEMP

The government must eliminate bureaucracy and "red tape" if its post-Dorian Economic Recovery Zones are to work, an Abaco-based poultry farmer warned yesterday.

"Economic concessions won't help if the amount of red tape we've been dealing with is still going to be a problem," said Lance Pinder from Abaco Big Bird Poultry.

"We're still in a day-to-day survival mode in Abaco, and we have not had a chance to really appreciate what was said by the prime minister with regard to the Economic Recovery Zone initiative. But, on the face of it, some of the stuff that will be made duty-free will definitely be needed. It will take years to build up Central Abaco again."

Dr Hubert Minnis on Sunday said the combined tax breaks and incentives package to stimulate recovery in the areas hardest hit by Dorian largely mirrors that employed for his Over-the-Hill revival initiative.

The government is establishing a $10m loan guarantee and equity financing facility that is targeted at micro, small and medium-sized (MSME) enterprises to either help them re-open or create new businesses. An applicant will be able to secure a maximum of $500,000.

Dr Minnis also foreshadowed the creation of a "one stop shop" for business assistance for Abaco and Grand Bahama, which will be charged with ending the bureaucracy and red tape facing businesses. It will be staffed by personnel from the Small Business Development Centre (SBDC), Bahamas Investment Authority, Ministry of Finance, Department of Inland Revenue, The Department of Environmental Health Services (DEHS) and Building Permits Unit.

Otherwise, the tax break and incentive package was largely predictable. It features duty-free and VAT 'border' free purchasing of all materials, fixtures and furniture, plus vehicles and equipment required for all business and residential reconstruction. It also extends to all domestic purchases of qualified items so that Bahamian wholesalers and distributors benefit, too.

Business license fees will be waived within the zones, while the availability of provisional business licences will enable entrepreneurs to start their operations within two business days. Businesses and companies taking advantage of these concessions will have to register with the Government as a means to prevent fraud, tax evasion and other abuses.

However, Mr Pinder said: "The whole area of commercial activity in Marsh Harbour is destroyed. A lot of the stuff sounds good, but if the red tape that goes with it is so heavy and the people can't access the concessions, then it won't be any good.

"We were supposed to get duty-free even before the storm, but even that could take us from two and sometimes three months before we can get approval for our duty free. We're even thinking about not rebuilding this farm. It's so bad, and working with the Government to do business in the first place before the storm wasn't that encouraging to begin with."

Mr Pinder continued: "At Big Bird we're lucky enough to get a bond from Customs, but a small farmer may not have that bond, so I can imagine how difficult it would be for them dealing with the red tape and backlog it creates for business. If we have the same problems with getting our duty-free then I don't see how it will help."

"Even before the storm sometimes I would get stuff released under the bond, but I can't process the rest of the Customs paperwork until I get that approval for the duty-free goods back from the Government. As a result, I don't have the figures to put into the VAT filing paperwork, then I run into problems with the Inland Revenue Department for not filing my paperwork on time.

"In addition to that the Customs Department likes that paperwork to be cleared up in a timely manner as well, so at the end of the day while I'm waiting for my duty-free approvals I'm not compliant with two government agencies, which runs me into other administrative and business problems."

Mr Pinder added that Customs' new Electronic Single Window (ESW) system had "not been that friendly or business sensitive for us" prior to Dorian. He explained: "For example, there was a glitch in the system where the tariff code for farm supplies would not deduct the duties off of a particular item, so I have been back and forth with agents from Customs in trying to get that sorted out.

"It's been a pain, but their representatives have been working hand in hand with us through the glitches and problems. But with all of that I don't see how my VAT filing would be ready for the due date for the end of October."

"A lot of the older businessmen just want to collect their insurance money and move on. A lot of them have been saying that we don't want the stress and strain of dealing with the Government on anything," Mr Pinder said.

"There are no workers at the Government buildings to do any work here now. The administrator's office may be open. You may get vouchers for gas. But nothing else; no banking and no government point person to talk to to do business. Nothing."